B2C2, a London-based cryptocurrency liquidity provider, collaborates with SFOX a California-based prime dealer of cryptocurrency. The main agenda of this collaboration is to provide a new source of convertible cash for key-investors, which includes asset proprietors, offshore investment funds, family offices and individuals having high net worth.
On the whole, the partnership aims at establishing an Over The Counter (OTC) trading platform at SFOX for the first time.
On giving an official statement in the press release, Danny Kim, Head of Growth at SFOX said,
We are delighted to partner with B2C2, the largest OTC liquidity provider whose streaming pricing and electronic trading capabilities are relied on by institutional market participants globally.
He further stated that SFOX clients will now be benefitted through a new medium of OTC liquidity which comes with extensive price discovery.
If we look beyond this, in terms of OTC trading volume, Crypto seems to resemble the FX these days closely. The crypto market has taken a substantial shift from the traditional exchanges and gone towards OTC platforms since the key investors have entered the space. On talking about the same, Nelson Minier, head of OTC at Kraken, stated that since the beginning of 2018, OTC trades have increased by 20% per month.
As per the official announcement by the company, the development of the crypto market is stimulating the growth of FX markets which is completely OTC based, which results in providing, deeper liquidity, better price discovery, and tighter spreads.
From a high-tech foundation’s viewpoint, crypto markets still have been lagging. Building a better Crypto market is the major goal of SFOX.
According to SFOX, the industry is evolving and companies like B2C2 and SFOX are collaborating to come up with technology and tools that the institutional marketplace looks forward to.
In the last few months, both companies have come up with new products. To allow the fund managers to create individual crypto portfolios, SFOX launched “Separately Managed Account Solution.”
Whereas in October, B2C2 launched a “gold-backed derivative product” that is fixed in Bitcoin. This particular product can only be availed by institutional clients who can trade the product via the Financial Conduct Authority (FCA) which is regulated under the OTC trading desk.